nep-cse New Economics Papers
on Economics of Strategic Management
Issue of 2022‒08‒22
nine papers chosen by
João José de Matos Ferreira
Universidade da Beira Interior

  1. The interplay between product innovation, publishing, patenting and developing standards By Blind, Knut; Krieger, Bastian; Pellens, Maikel
  2. ICT Expansion, Innovation Dynamics in the EU and Climate Neutrality-related Policy Options By Paul J. J. Welfens; Tian Xiong; David Hanrahan
  3. Techno-Globalization: Theory and Empirical Analysis for OECD Countries By Andre Jungmittag
  4. "Technology Industry Revolution 4.0 and Environmental Performance: The Mediating Role of Environmental Management Accounting " By Zarinah Abdul Rasit
  5. Agile R&D Units' Organization in Physical Product Development – An Empirical Investigation By Meier, Andre Klaus
  6. An overview on the Algerian National Innovation System in the Digital Era By Dehimat Amina; Amina Baroudi Dehimat
  7. Yoke of Corporate Governance and Firm Performance: A Study of Listed Firms in Pakistan By Ali, Amjad; Alim, Wajid; Ahmed, Jawad; Nisar, Sabahat
  8. "Sustainable Entrepreneurship in SMEs " By Cheah Wen Fong
  9. Stagnation despite ongoing innovation: Is R&D expenditure composition a missing link? An empirical analysis for the US (1948-2019) By Giovanna Ciaffi; Matteo Deleidi; Stefano Di Bucchianico

  1. By: Blind, Knut; Krieger, Bastian; Pellens, Maikel
    Abstract: Firms use a variety of practices to disclose the knowledge generated by their R&D activities, including, but not limited to, publishing findings in scientific journals, patenting new technologies, and contributing to developing standards. While the individual effects of engaging in the listed practices on firm innovation are well-understood, the existing literature has not considered their interrelation. Therefore, our study examines if the three practices are complements, substitutes, or unrelated in terms of firms' performance with product innovations new to the market. Our analysis builds on a sample of innovation-active firms from the German Community Innovation Survey, which includes information on the development of standards, enhanced with information on firms' engagement in patenting and publishing. We find that 26% of innovation-active firms engage in at least one of the three practices, and 22% of engaging firms combine them. Using supermodularity tests, we show that publishing and patenting as well as patenting and developing standards are substitutes. Publishing and developing standards are not significantly linked. Based on our findings, we derive implications for innovation management and policy.
    Keywords: Standardization,patents,scientific publications,product innovation
    JEL: O31 O32 O34
    Date: 2022
  2. By: Paul J. J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Tian Xiong (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); David Hanrahan (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: Climate change continues to challenge the global economy; particularly in industrialized countries, governments are increasingly coming under pressure to develop and implement adequate climate protection and innovation policies, as well as to co-operate in aligning them. At the same time, firms are also becoming more active in “greening†, by innovating in terms of greener products and processes in order to contribute to climate protection, stay at the technological frontier, and benefit from the increased environmental and sustainability awareness on the part of households, competitors and suppliers. Key areas of mutual concern to both policymakers and firms, therefore, include the determinants of green innovations – product or process – and how government can promote such innovation dynamics. Part of green innovations are covered by the European Union’s Community Innovation Survey (CIS), while the Organisation for Economic Co-operation and Development (OECD) also has data on green patenting dynamics. Using panel data on 35 European countries and covering the period of 2007-2018, including multiple waves of the CIS in a novel approach, we present an analysis on green innovation. The empirical analysis presented shows how key determinants of green innovation from the literature affect selected measures of green innovation. We find that the inward FDI stock intensity positively affects green process innovations (including manufacturing), while the ICT R&D Investment-GDP ratio has a negative impact on green innovativeness. As regards firms with both green process and green product innovations, GDP per capita is found to be a positive driver of innovativeness (excluding manufacturing) and is also a positive driver of green process innovations in firms with only green process innovations – but, paradoxically, is a negative driver of green product innovations in firms with only green product innovations. Regarding the rule of law, there is a positive impact on green innovations. The median age of the labor force has a negative impact on process innovations (excluding manufacturing), while the sign is positive for green process and product innovating firms (both including and excluding manufacturing). A green RCA variable is positively significant for green product innovating firms and green process and product innovators (including and excluding manufacturing). Our findings allow to suggest areas in which national and supranational policymakers should become more active to promote and foster green innovation in Europe.
    Keywords: Green innovation, product innovation, process innovation, ICT, Community Innovation Survey
    JEL: L86 Q55 O30 O31
    Date: 2022–07
  3. By: Andre Jungmittag (Frankfurt University of Applied Sciences)
    Abstract: Parallel to the globalization of production and sales, multinational firms have partly also internationalized their research and development (R&D). In both the media and modern research on innovation, the increase in terms of the international generation, transfer and diffusion of new technologies has been described as technological globalization and techno- globalization; research has picked up the topic in scientific analysis. Based on the patent indicators suggested by Guellec and Pottelsberghe de la Potterie (2001), this contribution gives a consistent analysis of global technological cooperation as well as of the global sourcing of innovations as key elements of techno-globalization. In addition to taking stock for a cross- section of OECD countries and a time series examination for the whole of the OECD, and Germany and the Netherlands in particular, the significant drivers of techno-globalization are determined by simple correlation and regression analyses. Furthermore, simple tests for beta convergence show that there is an international convergence of the patent shares with domestic inventors and foreign applicants and also a convergence of the countries’ patent shares with an international cooperation of inventors. The analysis is completed by a view on the sectoral differences with regard to the internationalization of innovations as well as by some considerations with regard to the links between the internationalization of enterprises’ innovations and domestic employment.
    Keywords: Internationalization of R&D, International collaborative patents, Patent analysis, Patent cooperation, Techno-globalization
    JEL: O31 O32 O34 R11
    Date: 2020–10
  4. By: Zarinah Abdul Rasit (Faculty of Accountancy, Universiti Teknologi MARA Author-2-Name: Nur Adibah Mat Bahari Author-2-Workplace-Name: Faculty of Business and Management, Southern University College, Johor Bahru, Malaysia Author-3-Name: Sharina Tajul Urus Author-3-Workplace-Name: Faculty of Accountancy, Universiti Teknologi MARA Author-4-Name: Aida Hazlin Ismail Author-4-Workplace-Name: Faculty of Accountancy, Universiti Teknologi MARA Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - The study aims to examine the relationship between advanced technology in IR 4.0 and the implementation of Environmental Management Accounting (EMA) and its impact on environmental performance. The research also proposes the mediating effect of EMA that there is an indirect effect of technology IR4.0 and environmental performance through EMA. Methodology/Technique - Online survey questionnaires were used to collect data distributed to the managers of the Malaysian electrical and electronic companies which are members of the Electrical and Electronics Association of Malaysia (TEEAM). Data analysis was performed using Partial Least Squares (PLS) analysis for the hypotheses testing. Findings - The findings confirmed that advanced technology significantly and positively influenced EMA and environmental performance. EMA significantly and positively influenced environmental performance. Evidence of EMA as a mediator was identified in the relation between advanced technology and environmental performance. Novelty - Environmental data with inadequate credibility prevents management from making informed decisions. Technology IR 4.0 is a key to solving EMA issues, enhancing real-time environmental data, and improving the production process, thus leading to efficient environmental management and improved environmental performance. The study was conducted due to insufficient empirical evidence on the employment of IR 4.0 advanced technology in the use of EMA that leads to enhanced environmental performance. Type of Paper - Empirical."
    Keywords: Environmental Management Accounting; Advanced Technology Industrial Revolution 4.0; Environmental Performance, Contingency Theory, Electrical Electronic Industry.
    JEL: Q50 Q55
    Date: 2022–07–30
  5. By: Meier, Andre Klaus
    Abstract: While software firms increasingly rely on agile methods in their development processes and consequently transform to entirely agile firms, this movement lately also transferred to the domain of physical product development. More specifically, even traditional mechanical engineering firms increasingly rely on agilely organized Research and Development (R&D) units to cope with the current business environment’s increased demands for innovations at even shorter time intervals. However, since extant agility research primarily stems from the information systems and operations management fields, agility research in R&D and innovation management literature is rising but still scarce, resulting in the concept’s insufficient exploration in this context. Moreover, extant research shares agility literature’s general flaws, such as a strong focus on the firm or project level and software development. Moreover, literature highly focuses on the concept’s outcome perspective, i.e., increased adaptiveness, instead of elucidating how to organize to be agile, i.e., the capability perspective. As a result of these shortcomings, extant literature has neglected the practically highly relevant phenomenon of agile R&D units, particularly their organization, which makes them so adaptive in new product development (NPD). This dissertation addresses this shortcoming by linking insights from agility research, R&D and innovation management literature, and organizational theory. Based on an interview data set from twelve agility experts and three survey data sets from 178 R&D managers, 110 R&D project managers, and 454 R&D project employees, this dissertation conducts four investigations in the form of separate research studies. By the studies’ alignment, the dissertation, for the first time, elucidates what holistically constitutes agile R&D units’ organization (ARDO) and reveals ARDO’s consequences on the R&D units’ overall performance and the individual employees nested in the R&D units. Moreover, this dissertation contributes to agility, R&D and innovation management literature, as well as organizational theory in general, first by approaching the agility concept in a new context, via a new unit of analysis, and from a new angle, thus finally and holistically conceptualizing agility’s neglected capability perspective. Second, by providing a better understanding of agility’s and innovation performance’s interplay, particularly by further linking the concept to innovation’s front end. Third, ARDO’s identification and operationalization as such a competence advance dynamic capabilities theory, which facilitates future quantitative research on a dynamic capability in the context of R&D and on agile R&D units in physical product development in general.
    Date: 2022
  6. By: Dehimat Amina (ESC - Ecole Supérieure de Commerce d'Alger); Amina Baroudi Dehimat (ESC - Ecole Supérieure de Commerce d'Alger)
    Abstract: The Algerian National Innovation System (NIS) is being discussed, its structure, key actors, role and the main challenges it is experiencing before and in the context of digital transformation. We intend to reveal the major characteristics of Algeria's NIS, as well as the impact of digital technologies on its performance, in order to highlight the challenges confronting it and the efforts required to overcome them. The Algerian NIS remains in its early stages and will need additional efforts from all its actors.
    Keywords: Industry 4.0,Digital Transformation,Innovation
    Date: 2022–06–04
  7. By: Ali, Amjad; Alim, Wajid; Ahmed, Jawad; Nisar, Sabahat
    Abstract: The objective of this exploration is to show the relationships between corporate governance tools (board size, board independence, CEO status, Board Education, and Established Years of the firm) and firm performance which is determined by the return on asset (ROA). Quantitative data are used to discover the association between the variables. The top 75 companies registered on the Pakistan Stock Exchange involving the period from 2010 to 2019 are taken as a sample. The research found that there is a connection between the performance of the firm with the overall extent of directors, board independence, and average education of board representatives. Insignificant results came for CEO duality and established years of the firm. The result predicted that an increase in total board members and average education of board members will increase firm performance (ROA), whereas a reduction in board independence will reduce firm performance (ROA) which explains the importance of corporate governance for the success of firm performance. Unlike the previous studies, this study tried to find the long-term influence of corporate governance on firm performance by analyzing five different variables for the listed firms in Pakistan. The study provides the importance of corporate governance tools and their effectiveness for the success of organizations, especially in Pakistan.
    Keywords: Board education, board independence, the board size, CEO duality, corporate governance, firm performance, Pakistan, return on asset
    JEL: G3 G30
    Date: 2022–01
  8. By: Cheah Wen Fong (Faculty of Business, Multimedia University Melaka, Malaysia Author-2-Name: Yuen Yee Yen Author-2-Workplace-Name: Faculty of Business, Multimedia University Melaka, Malaysia Author-3-Name: Suganthi Ramasamy Author-3-Workplace-Name: Faculty of Business, Multimedia University Melaka, Malaysia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: " Objective - Sustainable entrepreneurship is considered to be combined with economic, social, and environmental value creation, and is considered a combination of social enterprise and environmental enterprise. The small and medium-sized enterprises (SMEs) in Malaysia are without exception. However, due to the lack of research, the existing literature has not yet provided sufficient explanation for the establishment of sustainable entrepreneurship in Malaysian SMEs. This research included an introduction that gives an overview of the research, continued by the review of existing literature that correlates to the research topic followed by the methodology adopted for this research. Methodology - Specifically, this research extends the Entrepreneurial Event Model to test the proposed framework. To test the research framework and to achieve the research objectives, the survey questionnaire was used to collect the primary data of 200 respondents (entrepreneurs from Malaysian SMEs). The research used Analysis of Moment Structure (AMOS) and Statistical Package of Social Science (SPSS) to encode and analyse the main data collected in this study. Findings - This research's findings revealed that the developed model was sustainable. All the constructs were reliable and valid, and the value was acceptable. The research novelty present in the paper regarding many researchers pay little attention to the key factors that affect the sustainable entrepreneurial ability of SMEs. At this point, this study had proposed a new variable such as environmental awareness and examined its impact on sustainable entrepreneurship performance. Furthermore, the research also provides references for future practical and theoretical contributions. Novelty - This research provides new and important insights for SMEs, entrepreneurs, employees, and institutions through empirical testing of the framework, thereby contributing to knowledge. Type of Paper - Empirical"
    Keywords: Sustainable Entrepreneurship; Perceived Desirability; Perceived Feasibility; Propensity to Act; Environmental Awareness
    JEL: L21 L26 M19
    Date: 2022–07–30
  9. By: Giovanna Ciaffi; Matteo Deleidi; Stefano Di Bucchianico
    Abstract: Among the explanations for prolonged economic stagnation in advanced economies we find those that highlight the role of technical progress and its weakening impact on potential growth. Several contributions stress the apparent paradox of technological development and innovation going hand in hand with slowing labour productivity growth. This discourse is in turn linked to numerous factors, among which the pattern of research productivity, that appears to be falling in the last decades. The contribution of this article is to analyse the role of innovation expenditures composition, and its effects on productivity. We study whether productivity stagnation can be (partially) explained by the continuously falling ratio between public and private expenditures in innovation in the USA. We carry out an SVAR analysis of the US case during the period 1948Q1-2019Q4. In the empirical exercise we estimate the effect of public expenditure in innovation on productivity, private R&D, and GDP, comparing the outcomes with those relative to private expenditure in innovation. According to our results, the public type of innovation spending exhibits a positive effect on productivity and GDP, and it has a greater effect than private expenditure in innovation. In addition to this, public expenditure in innovation exerts a strong crowding-in effect on private investment in R&D. Therefore, according to the evidence we find, we maintain that the focus on the prolonged and sustained fall of public expenditure in innovation in relation to private expenditure of the same type helps in explaining lasting stagnation
    Keywords: Secular Stagnation, public and private R&D, innovation policy, research productivity, productivity growth
    JEL: O47 O32 O40
    Date: 2022–04

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